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2024

Record profit of more than $100 billion

In 2024, Google for the first time in history managed to achieve annual profits over $100 billion, which is much higher than the previous record in 2021 at $76 billion.

• Revenue amounted to $350 billion for 2024, + 13.8% YoY.

• Net profit - record 100 billion, + 35.7% YoY

• Operating cash flow - record 125.3 billion, + 23.1% YoY

• Capital expenditures - a new maximum of 52.5 billion, + 63% YoY.

• Dividends and baibek in the aggregate - $69.6 billion, + 13.1% YoY.

Google is increasingly going into the cloud and the corporate segment, and to understand Google's success, you need to estimate revenue by segment and not for a year, but for at least three years to assess the trend.

The largest contribution to revenue growth ($10.7 billion or + 24.8% in three years - 4q24 to 4q21) was provided by the Google Search & Other segment (198.1 billion in revenue for 2024), which includes advertising revenues generated within the Google ecosystem (search engine, Google Maps, Gmail, Google Play Store and dozens of other different Google services in which advertising pops up).

In second place in terms of contribution to revenue growth (6.4 billion or + 115.7% for three years in quarterly breakdown) Google Cloud (43.2 billion in annual revenue) is located, including Google Cloud Platform, Google Workspace tools and other business services that are focused mainly on corporate customers and the provision of computing power, tools for working with big data, machine learning, storage and databases, development tools and tools for managing the network and infrastructure environment.

In third place are Google Subscriptions, Platforms & Devices (40.3 billion annual revenue), providing revenue growth of 3.47 billion + 42.5% over three years. This segment includes store revenues, Google Play Pixel device sales, service subscriptions (YouTube Premium, YouTube Music, YouTube TV, NFL Sunday Ticket and Google One).

YouTube Ads is in fourth place (36.2 billion in revenue for 2024), forming an increase of 1.84 billion or only + 21.3% in three years. Everything is clear here - advertising inside YouTube.

Google Network is in fifth place (30.4 billion in annual revenue), where revenues decreased by 1.35 billion or minus 14.5% over three years. This includes all external revenue from ads placed on third-party sites and applications through AdMob, AdSense, and AdManager.

The main segment of Google's business is advertising within the ecosystem + YouTube, generates a total of about $235 billion in annual revenue, but the growth rate slows to 12-13% per annum.

The segment where all investments go is Google Cloud with the highest revenue growth rate.

For the first time in history, the company began to pay dividends from 2q24 in the amount of about $2.4 billion per quarter, and the volume of baibes practically does not change in mid-2022.

Google redistributes all resources into capital expenditures, which break regular records as part of the development of AI projects.

Google has begun to actively expand the Google Cloud platform since 2017, betting on cloud technology and AI.

Since 2017, excess costs as part of the expansion of computing power for AI have amounted to $150 billion - this is almost four annual revenues of Google Cloud, only a part of which is generated by excess power.

There is no concept of monetization of AI from Google yet, but the company integrates AI mainly into more relevant ad targeting to user preferences, but this does not cost $150 billion, Spydell Finance wrote.

Record revenue and giant AI investment in 9 months

Google's revenue in 3Q 2024 was a record 88.3 billion - an increase of 15.1% YoY, + 27.8% in two years and + 118% in 5 years by the third quarter.

For 9m24, revenue rose to 253.4 billion vs 221.1 billion for 9m23, 206.8 billion for 9m22 and 115.8 billion for 9m19.

Operating profit in 3Q24 amounted to 26.3 billion - an increase of 33.6% YoY, + 89% over two years and + 272% over 5 years.

For 9m24, operating profit amounted to 81.4 billion, + 34.3% YoY, + 43.6% for two years and + 226% for 5 years for the same period of time.

Net income rose to 26.3 billion (Google on track for 100 billion in 12-month moving earnings), + 33.6% YoY, + 89% in two years and + 272% in 3Q19.

For 9m24, net profit amounted to 73.6 billion, + 38.5% YoY, + 58.8% over two years and + 210% over 5 years.

The operating flow is much more modest - 30.1 billion and unchanged compared to last year, + 31.4% to 3q22 and + 98.5% over 5 years.

For 9m24, operating cash flow amounted to 86.2 billion, which is only 4% higher than for 9m23, an increase of 27% over two years and + 115% over 5 years.

In the context of cash flow distribution, operating flow is much more important than profit, as it shows the ability to pay dividends and a bayback without borrowing.

In aggregate, 51.6 billion for 9m24 vs 45.3 billion for 9m23, 43.9 billion for 9m22 and only 12.1 billion for 9m19 were allocated to dividends and baibek.

Capital expenditures stabilized at 13.1 billion in the quarter, for 9m24 an incredible 38.3 billion vs 21.2 billion for 9m23, 23.9 billion for 9m22 and 17.5 billion for 9m21 went to capex.

Google is actively investing in the expansion of data centers for AI projects, so over 80% of all capex goes in this direction.

The most profitable segment of the business is advertising revenues, but the fastest growing segment is Google Cloud, with revenues of 11.3 billion in 3q24 and 31.3 billion in 9m24 vs 23.9 billion (+ 30.9%) in 9m23, 19 billion in 9m22 and 6.3 billion in 9m19.

Google Cloud's share rose to a record 12.9% in its total revenue structure vs 11% a year earlier, 10% in 3q22 and 6% in 3q19.

For 9m24:

• Google Search brought in 144.1 billion in revenue vs 127 billion a year earlier (+ 13.4%),
• YouTube - 25.7 billion vs 22.3 billion (+ 15.1%),
• Google Network - 22.4 billion vs 23.1 billion (a decrease of 2.7%), and * Google subscriptions, platforms, and devices - 28.7 billion vs 23.9 billion (+ 20.1%).

Interestingly, again, like last quarter, not a word is meaningful about AI as if it does not exist at all, although Google's AI projects have been actively promoting for more than a year, but there is nothing complete emptiness.

The AI segment is highly unprofitable, but offset by profitable destinations.

2023: Google's cloud business remains unprofitable

Google's cloud services division continues to generate losses. This is stated in the financial report published on February 2, 2023 by the parent holding Alphabet. Read more here.

2021

Revenue from the sale of games - $11 billion

The largest public companies by revenue from the sale of games in 2021

Second place in the list of most visited sites

Ranking of the most visited sites in 2021

2020: Global Smartwatch Market Share - 5.1%

Google The global market share smartwatch was 5.1% (data). IDC More. here

2019

Rise in advertising sales to $103 billion

Google legally hid 19.9 billion euros in taxes on Bermuda

In early 2019, it became known that Google transferred 19.9 billion euros through Holland a registered company to Bermuda in 2017. The internet giant used a well-known tax avoidance scheme.

According to the Reuters news agency, citing documents from the Netherlands Chamber of Commerce, in 2017, about 4 billion euros more were spent through Google Netherlands Holdings BV compared to 2016. Google claims that the company only uses legal schemes and pays all taxes that are required.

Google took away almost 20 billion euros from taxation with a "sandwich"

Google, like other international companies, pays the vast majority of its corporate income tax back home, and we have paid a global effective tax rate of 26% over the past ten years. We pay all taxes and comply with tax laws in every country in which we operate around the world, the corporation said.

The Dutch subsidiary of Google is used to transfer royalty proceeds received outside the United States to the Irish affiliate Google Ireland Holdings, registered in Bermuda, where companies do not pay income taxes. This is the so-called double Irish scheme with a Dutch sandwich.

This popular scheme in the United States is applied to optimize tax liabilities by using two Irish and one Dutch companies. Irish companies act as "bread," and between them there is a Dutch company, like "cheese" or "sausage." Such a scheme is legal and is used mainly by large US corporations in relation to optimizing income from intellectual property. The method allows you to significantly reduce taxes in the United States and other countries.^[1]

2018

Revenue growth in the segment of software platform solutions based on AI by 61.7%

Revenue - $136.22 billion; profit - $36.52 billion

In 2018, Alphabet's revenue amounted to $136.82 billion against $110.86 billion a year earlier (an increase of 23%). Almost all sales - $136.22 billion - fell on Google. In 2017, Google's revenues were measured at $110.86 billion. The bulk of the turnover comes from advertising receipts. Google's annual profit rose from $32.29 billion to $36.52 billion.

2014:11% increase in net profit to $14.44 billion

Net profit Google in 2014 increased by 11.7%. The company earned $14.44 billion compared to $12.92 billion in 2013, Bloomberg reports. On a per-share basis, earnings were $21.02 versus $19.07 in 2013. Google's annual revenue increased by 19% to $66 billion.

Google's fourth-quarter profit rose 41% to $4.75 billion, coming in at $6.91 per share and falling short of forecasts at $7.11. The company's quarterly revenue amounted to $18.1 billion.

2013: Revenue of $59.83 billion (+ 19 %)

Google's annual revenue increased 19% to $59.83 billion, with $4.3 billion coming from its Motorola Mobility division.

Google's advertising revenue rose 16% over the year, to $50.58 billion. In the fourth quarter, Google generated $14 billion in advertising revenue, or 83% of quarterly revenue. At the same time, the average cost of an advertising click decreased by 11% in the quarter. This figure has been declining for the company for about two years.

Google's net profit at the end of 2013 increased by US GAAP by 20% - to $12.92 billion, compared with $10.74 billion for 2012. On a per-share basis, earnings were $38.13 versus $32.3 in 2012.

2012: Annual revenue of $46 billion (+ 21 %)

In 2012, Google's revenue reached $46 billion, which is 21% higher than in 2011. Profit increased by 10% to $10.7 billion. Google's revenue in the IV quarter of 2012 increased by 36% to $14.4 billion compared to the same period in 2011, profit - by 7% to $2.9 billion.

In 2012, the search giant's revenue from online advertising and other businesses amounted to $12.9 billion. The Motorola Mobile division, which was acquired in 2012 for $12.5 billion, generated $1.5 billion in revenue.

2011: Annual revenue of $37.9 billion (+ 29.3 %)

Consolidated revenue of the entire Google for 2011 increased by 29.3% to $37.9 billion, net profit - by 14.5% to $9.74 billion, and net profit margin was 25.7%.

2009: Revenue $23.7 billion, net income $6.5 billion

Financial indicators (us gaap, 2009): revenue - $23.7 billion, net profit - $6.5 billion.